Trophy of the year nominee: Nordnet – Finnish Endowment Wrapper

Insights

16/05/2024

Nordnet, in strategic collaboration with Lumera, recently introduced Finland's first fully digitized Savings and Investment Policy (SIP), known as the "Finnish Endowment Wrapper." This product has made waves in the financial services landscape by democratizing access to savings and insurance products, expanding availability beyond just the affluent demographic. Previously, such products were mainly accessible to wealthier individuals, but Nordnet's enhancements have significantly changed that.

The "Finnish Endowment Wrapper" takes advantage of Finland's SIP tax benefits on savings life insurance policies. Leveraging Lumera's successful platform implementations in Denmark, Norway, and Sweden, Nordnet strategically extended its operations into Finland. This expansion was aimed not only at increasing Nordnet's market presence but also at attracting a broader customer base with a product that offers unprecedented flexibility, a vast investment universe, competitive pricing, and a completely digital experience — attributes not commonly found in similar products offered by competitors.

A key innovation of the Nordnet offering is the ability for customers to trade in not only mutual funds but also stocks, ETFs, and other securities through the same platform — a first in the market within a SIP framework.

The launch of this product was a landmark event and received significant media attention, being featured as headline news for its pioneering approach to broadening market access. It signifies a significant advancement in Nordnet's product lineup across the Nordic countries, showcasing substantial business expansion and a commitment to innovation and customer satisfaction.

Furthermore, the "Finnish Endowment Wrapper" sets an example for companies looking to enter new markets or broaden their product lines. The successful collaboration between Nordnet and Lumera lays a foundation for future growth opportunities, allowing Nordnet to increase its market share in Finland and seamlessly integrate complementary insurance savings offerings in the future. This project serves as a testament to the agility required to enter new markets in the Life and Pension industry, providing inspiration for other entities considering similar ventures.

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